According to the latest figures from WorldACD Market Data, average worldwide airfreight rates increased by 1% to US$3.24 per kilogram, while spot rates also rose 1% to US$3.75 per kilogram. Compared with the same period last year, average rates are up 35%, with the Middle East and South Asia recording some of the strongest increases.
Air cargo capacity in the region has recovered significantly in recent weeks. Routes linking the Middle East with North America, Europe and Asia have all seen major improvements as airlines restore suspended services. Capacity between the Gulf and North America, for example, is now much closer to pre-conflict levels than it was just a week earlier.
Despite the return of additional capacity, freight prices have remained relatively stable. Industry analysts say continuing uncertainty, limited passenger bellyhold space and the heavy reliance on freighter aircraft are helping keep rates higher than normal.
Operating costs also remain above historical levels, although jet fuel prices have eased considerably in recent weeks. Global jet fuel prices fell another 14% during the week, reducing some pressure on airlines, but they are still around one-third higher than they were a year ago.
Market observers say freight rates are likely to remain firm until stability returns across the region and passenger flight schedules fully recover, allowing more cargo capacity to return to the market.
